Question 16 (1 point) The M1 measure of the money supply equals A) currency plus

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Question 16 (1 point) The M1 measure of the money supply equals A) currency plus checking account balances plus traveler's checks plus savings account b O B) currency plus checking account balances. C) currency plus checking account balances plus traveler's checks. D) paper money plus coins in orculation Save Question 17 (1 point) The M2 measure of the money supply equals O A) None of the above. O B) savings account balances plus small-denomination time deposits plus traveler's checks. O c) savings account balances plus small-denomination time deposits plus noninstitutional money market fund shares. O D) M1 plus savings account balances plus smal-denomination time deposits plus noninstitutional money market fund shares. Save

Explanation / Answer

Question 16

M1 measure of money supply includes currency in circulation, checkable deposits, and traveler's checks.

So, M1 measure of money supply equals currency in circulation plus checking account balances plus traveler's checks.

The correct answer is the option (C).

Question 17

M2 measure of money supply includes all components of M1, savings account balances, small-denomination time deposits, and non-institutional money market fund shares.

So, M2 measure of money supply equals M1 plus savings account balances plus small-denomination time deposits plus non-institutional money market fund shares.

Thus, the correct answer is the option (D).

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